February 26, 2017

Homework Help: Economics

Posted by Joe on Thursday, July 16, 2009 at 12:44pm.

Under marketing orders instituted during the 1930’s and administered by the U.S. Department of Agriculture, orange growers in California and Arizona have been successful in behaving as a cartel in the fresh orange market. Despite the ability of California and Arizona growers to rely on marketing orders to cartelize the fresh fruit market, explain why, from a general equilibrium perspective, marketing orders have had only a limited effect on grower profits because of the fact that fruit can be diverted to secondary, processed food markets such as orange juice concentrate.

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